Tyler Technologies Inc

tylertech.com

What Do They Do?

Sells software and technology systems for government agencies, including tools for public administration, courts and public safety, and schools.

How Do They Make Money?

Government clients pay for hosted software over contract terms and for digital services and payments based on billable activity; on-premise clients generally pay annual support fees in advance. Implementation is billed by fixed fee or hourly charge, while license fees are mostly due when software access begins and hardware is billed on delivery.

revenue

Segment	Share	How money arrives
Subscriptions	68% FY2022: 55%
Maintenance Recurring	19% FY2022: 25%	Recurring
Professional services Sold outright	10% FY2022: 15%	Sold outright
Software licenses and royalties Licensed	0.6% FY2022: 3.2%	Licensed
Hardware and other Sold outright	1.9% FY2022: 1.8%	Sold outright

Who Are Their Customers?

Tyler markets mainly through its own sales teams; partners also help sell and deliver services for some products, especially in state and federal markets. Buyers are federal, state and local government agencies, including school districts.

Do Revenues Turn Into Profits?

Yes. It kept 14 cents of every revenue dollar as net income in FY2025 and turned 27 cents into free cash flow.

Operating income, FY2025

15% of revenue

▲ +19% vs FY2024 ($299.5M, 14%)

Net income, FY2025

14% of revenue

▲ +20% vs FY2024 ($263M, 12%)

Free cash flow, FY2025

27% of revenue

▲ +6% vs FY2024 ($604.1M, 28%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +8%; vs $596.1M in Q2 FY2025
Net income: ▲ +10%; vs $84.6M in Q2 FY2025

Subscription and Circulation share of revenue vs 68.0% in Q2 FY2025

Jul 29, 2026 Set full-year 2026 revenue and earnings guidance The forecast calls for revenue of $2.535 billion to $2.575 billion and non-GAAP diluted earnings per share of $12.95 to $13.20.
Apr 20, 2026 Acquired a court technology company The acquisition adds cloud-based digital court recording, speech-to-text and live transcription tools for courtrooms.

Growing. Revenue grew 46% in 4 years, from $1.6B in FY2021 to $2.3B in FY2025, about 10% a year.

Revenue over time

Subscriptions Maintenance Professional services Software licenses and royalties Hardware and other

$2.5B$1.3B$0

FY2021 FY2022 FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with Oracle, Infor, SAP, Workday, CentralSquare Technologies, Thomson Reuters, Motorola Solutions, Axon Enterprise, and Constellation Software

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